Stealing from the Poor and Giving to the Government?

Home-equity theft is unconstitutional.

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A for-sale sign outside a house in the Maple Heights suburb of Cleveland, Ohio, in 2012.

Shannon Stapleton/Reuters

Even though the legend of Robin Hood is 800 years old, some modern local governments haven’t gotten the message that the Sheriff of Nottingham — who stole from the poor via oppressive and exorbitant taxes — was the bad guy. In fact, some local governments today have even taken theft a step further, seizing property and pocketing home equity when citizens fail to pay small property-tax bills.

Take the case of Geraldine Tyler, age 94. Tyler owned a condominium in Hennepin County, Minn. Owing to health and safety concerns, she moved to a senior-living apartment when she was 80. After missing property-tax payments on the condo, she ended up owing $2,300 in taxes and $12,700 in fees and penalties for those unpaid taxes. Hennepin County initiated a tax foreclosure and sold the condo for $40,000. But instead of taking only the $15,000 that Tyler owed and letting her keep the rest of her equity, the county pocketed the remaining $25,000, too.

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About the Author

Thomas A. Berry

Thomas A. Berry is a research fellow at the Cato Institute’s Robert A. Levy Center for Constitutional Studies and the editor in chief of the Cato Supreme Court Review.

IM

About the Author

Isaiah McKinney

Isaiah McKinney is a legal associate at the Cato Institute’s Robert A. Levy Center for Constitutional Studies.

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